Hess will issue 0.1373 shares of its common stock in exchange for each outstanding share of American Oil & Gas common stock. It will provide American Oil & Gas with a $30m working capital credit facility to finance exploration and production activities and other working capital needs prior to the closing of the transaction.
Pat O’Brien, CEO of American Oil & Gas, said: “We believe this transaction captures the value that we have been able to create since our initial entry in the North Dakota Bakken play four years ago.
“We are excited about the leverage our stockholders will gain not only to Hess compelling Bakken position and developmental activities, but also to Hess large and diverse global project portfolio.”
Greg Hill, president of worldwide exploration and production at Hess, said: “This acquisition builds upon our strong land position in the Bakken, leverages our nearby infrastructure and offers operational synergies.”
American Oil & Gas is engaged in exploration, development and production of hydrocarbon reserves primarily in the Rocky Mountain region.
